Business Process Outsourcing M&A Update

1Q 2021

RESOURCE HIGHLIGHTS

  • M&A deal volume was down 17% to 54 completed transactions in Q1 2021 from 65 deals in the same period in the prior year
  • Despite the decline in Q1 activity, deal volume for 2021 is expected to return to pre-pandemic levels and surpass 2020 levels
  • Strategic buyers accounted for 20.4% of deal volume in Q1 2021 vs PE investors with 79.6%
  • The acquisition of Cognate Bioservices by Charles River Laboratories (NYS: CRL) for $875 million on March 29, 2021 represented the largest BPO deal in Q1 2021
  • Stock prices continued the upward momentum while valuation multiples trended lower in Q1 2021 from prior year levels
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